controlling the frequencies:

some current regulatory realities

big(ger) picture

explosion in demand

Estimate around 120 – 150 new entrants seeking access as a result of licence conversion – mostly WISPs but some looking to use their ECNS licences and become telco access providers

+ large number of class licensees now registering and looking for regional allocations

+ very aggressive positions from incumbents, especially the mobile networks

big(ger) picture

constriction in supply

Current frequency management approach not geared to handle demand – massive pile of applications which are gathering dust

+ indications that ICASA / Govt. will look to the assignment of frequency to achieve policy goals relating to universal service and transformation

+ lack of transparency, esp. with regard to government use

+ mantra: spectrum is scarce

satfa

● Review of the South African Table of Frequency Allocations (SATFA)

– Top-level frequency management document– Public hearings held in August 2009– Will be a further draft and further opportunity to

comment– Lengthy process closely aligned to ITU and World

Radiocommunication Conferences (WRC)– Allocation: the uses to which specific bands may

be put– Assignment: actual issuing of licences to those

who qualify to use it

2.6 & 3.5 GHz● ICASA has confirmed that demand exceeds supply in the 2.6 &

3.5 GHz bands● July 2009: draft regulations and findings document released

proposing beauty contest or auction or combination thereof as the market mechanism

– 2.6GHz (2 500 – 2690MHz)Assigned on a national basis – there will be 4 assignments of 30MHz each, whether intended for FDD or TDD methods. ICASA will cause in-band migration where necessary (likely to affect Sentech / iBurst).

– 3.5GHz (3 400 – 3 600MHz)Assigned with respect to geographic catchments areas which will be designated on the basis of population density. There will be a maximum of 28MHz assigned per catchments area whether intended for FDD or TDD methods

● According to ICASA this will take place Q4 2009

2.6 & 3.5 GHz

● Evaluation criteria relate to

– structure of ownership and control

– nature and extent of consumer benefits to be derived by the general public

– business plan

– technical plan

– track record and expertise in the sector

– BEE (At least 30% direct BEE ownership, i.e. disenfranchised prior to 1994)

– employment equity

● There are a number of restrictions on who can obtain licensed frequency, including:

– cannot be an affiliate or hold more than 5% in another applicant in the same band

– cannot have already been granted a licence in the designated band (think Sentech, iBurst in 2.6 GHz & Telkom, Neotel, Sentech in 3.5GHz)

– cannot have less than 30% direct BEE ownership.

demand exceeds supply??

● Delays suggest politics and policy are at play– Trend towards greater role of state in provision of services

● Other bands where ICASA has indicated that there is excess demand

– 2.3 GHz– 2.5 GHz– 5.8 GHz– Lower 7 GHz– 10.5 GHz

● All likely to be subject to some form of market-based mechanism for assignment

demand exceeds supply???

● No transparency in the assignment of frequency in South Africa

● ICASA has referred to “permanent assignments” in the 2.6 and 3.5 GHz bands

● No public progress on auditing usage of existing frequency assignments – ICASA proposing to deal with this through pricing and competition provisions

● While demand in certain bands may exceed non-assigned frequency in those bands there is no available evidence of anything but administrative scarcity in supply

● Demand for information certainly does exceed supply

Use it or lose it...

● From the draft scarcity regulations:

“The Authority has determined that in cases where the licenced radio spectrum remains unused for a considerable amount of time a principal of use it or lose it will apply.”

...wish-washy and nobody should have any unmanaged expectations in this regard

co-ordination of usage● No indication from ICASA with regard to the drafting of the

regulations contemplated under section 33(3) of the ECA relating to frequency co-ordination

33. (1) Holders of a radio frequency spectrum licence must, in good faith, co-ordinate their respective frequency usage with other such licensees to—

(a) avoid harmful interference among radio frequency spectrum licensees;

(b) ensure efficient use of any applicable frequency band; and

(c) allow for the provision of cost-efficient services.

(2) Where radio frequency spectrum licensees are unable or unwilling to co-ordinate in good faith in terms of subsection (1), the Authority must intervene and resolve the dispute.

(3) The Authority must prescribe regulations governing the co-ordination contemplated in subsection (1), which may include a process for the resolution of disputes among radio frequency spectrum licensees on an expedited basis.

licence exempt frequencies● 2.400 – 2.583.5 GHz ISM allocated WLAN, wireless wideband

systems, wireless wideband data transmission applications, with eirp of 100mW. Interference with Telkom licensed use a problem.

● 5.150 - 5.350 Indoor Hiperlan allocated for Wireless Access Services / Radio Local Access Networks. Indoor use only with eirp of 200mW. DFS and TPC obligatory (to prevent interference with radar systems)

● 5.470 - 5.725 Outdoor Hiperlan allocated for Wireless Access Services / Radio Local Access Networks. Indoor use & outdoor use with eirp of 1W. DFS and TPC obligatory (to prevent interference with radar systems – 5600-5650 MHz).

● 5.725 - 5.875 ISM currently allocated for non-specific short range devices with eirp of 25mW.

● 17.1 – 17.3G allocated for Wireless Access Services / Radio Local Access Networks – 100mW eirp.

5.8 GHz

● Enquiry into the use of the 5725-5875 MHz band for wireless broadband access– launched on 8 March 2006– Informal indications that will be allocated to FWA

with an eirp of 4W Point-to-Multipoint and 200W Point-to-Point

– But as at September 2009 no further progress appears to have been made.

– Will probably be finalised in conjunction with the SATFA review

spectrum pricing

● Proposed adoption of Administrative Incentive Pricing (AIP)– Used successfully in the UK to promote efficiency of

use, especially amongst government users– But not a regulatory tool for addressing spectrum

hoarding as ICASA seems to think it is– In pricing formula propose sharing factor as an

incentive to sharing (but prior process required)● No progress on spectrum trading

regulatory interventions

● “Open” also refers to open management of frequency– OSA should promote transparency and best practise in

managing for efficiency● OSA should also actively seek to address information

black holes and asymmetries in order to inform regulatory intervention– Promotion of Access to Information Act request for access to

the database of frequency assignments– Information has to be provided to allow ECNS licensees to

exercise their right to apply for frequency● Participation in ICASA and DoC processes – urgent

need for multi-disciplinary intelligence from outside the incumbents to be applied

thank you.

corrections and suggestions most welcome.

www.ellipsis.co.za

dominic@ellipsis.co.za